THE TELECOMMUNICATIONS CHALLENGE CHANGING TECHNOLOGIES AND EVOLVING POLICIES

Significant and sustained increases in semiconductor productivity, predicted
by Moore’s Law, has ushered a revolution in communications, computing, and
information management.1 This technological revolution is linked to a distinct
rise in the mid-1990s of the long-term growth trajectory of the United States.2
Indeed, U.S. productivity growth has accelerated in recent years, despite a series
of negative economic shocks. Analysis by Dale Jorgenson, Mun Ho, and Kevin
Stiroh of the sources of this growth over the 1996 to 2003 period suggests that the
production and use of information technology account for a large share of the
gains.